CBD and suburban multi-tenant office properties are eligible. Should have a stabilized income. Unacceptable candidates include office condominiums, buildings that cannot be converted to multi-tenant uses and economically obsolete properties.

Eligible Property Locations:

Nationwide; located on main roadways with good visibility and access, or in primary office areas or demonstrated ability to complete and re-lease at market rates. Require solid market strength as determined by, among other factors, absorption and trends in population and employment.

Loan Size:

$1 Million - $15 Million; may consider up to $25 Million.

Debt Service Coverage:

1.25 to 1.30, depending on property type.

Loan-to-Value Ratio:

Up to 75%

Loan Term:

7 or 10 years

Amortization:

30 years, or less, depending on major lease terms and expiration.

Tenancy:

Prefer multi-tenant or credit-tenant properties. Loans for single tenant properties will normally be amortized over the remaining term of the lease.

NOI Calculation:

Rents are the lesser of the contractual base rents or current market rents.
Minimum vacancy of 5% or market.
Recoveries on NNN rents must be consistent with market.
Rent Roll - Require smooth lease expiration schedules so that the debt coverage ratio in any given year does not fall below break-even. May consider properties with significant rollover risk on a case-by-case basis.
Management Fee - Minimum management fee of 5% of effective gross income.
Reserves - $.10 to $.25 per square foot for structural reserves depending on property age and condition and adjusted in accord with the engineering report. Determine TIs/Leasing commission by rollover schedule and market-based TI/leasing commission requirements.